King Corporation decided to sell its sporting goods business segment for $900,000, on September 1,...
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King Corporation decided to sell its sporting goods business segment for $900,000, on September 1, Year 1, which is also the disposal date. The book value of the segment's net assets is $700,000 on this date. The pre-tax income for the segment for the period January 1 - September 1, Year 1, was $20,000. Assuming a tax rate of 40%, choose the correct reporting for discontinued operations in the income statement of King Corporation, for the year ended December 31, Year 1. Income (loss) from Gain (loss) from disposal of discontinued Discontinued operations operations Choice $20,000 $200,000 2 3 $8,000 $12,000 SO $120,000 $120,000 S132,000 4 Select one: a. Choice 1 b. Choice 2 C. Choice 3 d. Choice 4
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